Mid-Year Budget Cuts for FY 2013

December 4, 2012

Because tax receipts for FY 2013 have been lower than expected, the Governor today announced a series of mid-year spending cuts--along with plans to use money from existing reserves.

The budget that was enacted in July started to restore some of the significant cuts to education, public health, human services and other core programs that had been made over the last four years. Today's actions repeal or reduce a number of those limited restorations.

Among the cuts announced today are the following:

Lower reimbursements for districts with high-needs special education students (via $11.5 milllion in cuts to the SPED Circuit Breaker)

A 46% cut to a new program that helps reimburse local school districts for transporting homeless students to and from school

A 1 percent cut to Local Aid, which funds municipal services including police and fire protection, parks, and public works. (This cut would have to be approved by the legislature.)

$7.4 million in cuts to Mental Health programs, including some services for children and some for adults

Programs administered by the Department of Children and Families were cut by more than $7.0 million, including a $5.2 million cut to residential care

The Employment Services Program was cut $790,00, reducing its funding level to 76% below its pre-recession level. The program provides education, occupational skills, and employment support services to low-income families with children

$3.7 million in funding for Law & Public Safety programs

About $128 million in total cuts and savings to MassHealth. Since Massachusetts receives a 50 percent federal reimbursement for most MassHealth spending, the net savings for the state amount to roughly half of this total. The administration also expects to tap the Commonwealth Care Trust Fund (CCTF), since FY 2013 costs for the Commonwealth Care program are expected to be lower than originally projected (companion legislation filed with the 9C cuts would allow the administration to reduce the transfer from the General Fund to the CCTF, but no amount is specified).

On the revenue side:

$200 million from the state stabilization fund (the "rainy day" fund)

An additional $109 million in reserves and federal revenue

There are two basic reasons that Massachusetts continues to find itself in a fiscal crisis. First, because of the lingering effects of the Great Recession, which has sapped state revenues even as it has increased the number of people relying on core safety net services. And second, because of tax cuts and other declines in tax receipts over the last fifteen years that cost the state over $3 billion in annual revenue. [For more detail, see Massbudget's FY13 Budget Preview.]

Mid-year budget cuts of this type are officially referred to as 9C cuts. They are designed to ensure that the overall budget of the Commonwealth remains balanced, and you can read more about how they work here.

The table below contains a full list of the proposed 9C cuts (though neither the reserve funds nor the proposals that require legislative approval are included):

Line-Item

Name

FY12 Spending

FY 13 Before Cuts

9C Cut

1100-1100

Office of the Secretary of Administration and Finance

2,741,666

2,846,156

-50,000

1100-1560

Massachusetts Development Finance Agency

N/A

440,692

-200,000

1100-1700

Administration and Finance Information Technology Costs

26,457,572

28,202,693

-250,000

1106-0064

Caseload and Economic Forecasting Office

57,446

251,969

-25,000

1599-0026

Municipal Regionalization and Efficiencies Incentive Reserve

8,392,356

14,547,644

-6,000,000

1599-1301

Program Evaluation Reserve

N/A

500,000

-500,000

1599-1705

June 1 2011 Storm Reserve

N/A

4,536,093

-1,300,000

1599-4417

E.J. Collins Jr. Center for Public Management

496,518

400,000

-100,000

1599-7104

Dartmouth/Bristol Community College Reserve

2,700,000

4,400,000

-850,000

1102-3199

Office of Facilities Management

N/A

10,453,359

-150,000

1108-5100

Group Insurance Commission

2,491,028

2,337,203

-125,000

1201-0100

Department of Revenue

80,380,285

87,225,100

-1,187,000

1201-0130

Additional Auditors Retained Revenue

23,882,229

27,940,257

-1,488,000

1201-0160

Child Support Enforcement Division

33,871,544

35,380,491

-250,000

1231-1000

For the Rate Relief Component of the

500,000

500,000

-500,000

1232-0100

Underground Storage Tank Reimbursements

18,199,817

32,800,183

-6,500,000

1310-1000

Appellate Tax Board

1,734,467

1,806,028

-25,000

1750-0100

Human Resources Division

2,610,724

2,561,318

-100,000

1775-0115

Statewide Contract Fee

2,975,933

3,500,000

-55,000

1790-0100

Information Technology Division

2,995,265

3,195,378

-50,000

2000-0100

Executive Office of Energy and Environmental Affairs Admin

7,237,606

5,856,081

-130,269

2000-1700

Energy and Environment Information Technology Costs

9,806,865

10,145,502

-142,112

2030-1000

Environmental Law Enforcement

8,681,029

8,982,241

-5,934

2030-1001

Environmental Law Enforcement Recruit Class

N/A

750,000

-174,112

2200-0100

Department of Environmental Protection Administration

24,569,679

25,966,270

-341,586

2260-8870

Hazardous Waste Cleanup Program

11,903,512

13,629,640

-170,000

2260-8875

Cape Cod Wastewater Study

150,000

350,000

-350,000

2300-0100

Department of Fish and Game Administration

658,700

709,975

-1,416

2300-0101

Riverways Protection Restoration and Public Access Promotion

416,856

442,824

-26,054

2320-0100

Fishing and Boating Access

421,157

466,221

-16,659

2330-0100

Division of Marine Fisheries Administration

4,349,345

4,812,837

-130,000

2511-0100

Department of Agricultural Resources Administration

4,320,179

4,857,151

-335,000

2800-0100

Department of Conservation and Recreation Administration

3,652,281

3,800,459

-50,000

2810-0100

State Parks and Recreation

41,249,220

41,409,387

-1,480,000

2820-2000

Streetlighting

3,000,000

3,060,000

-5,000

4000-0500

MassHealth Managed Care

4,047,087,106

4,167,475,376

-86,130,000

4000-0700

MassHealth Fee-for-Service Payments

1,847,705,917

1,968,522,476

-26,800,000

4000-0640

MassHealth Nursing Home Supplemental Rates

317,784,772

318,700,000

-15,100,000

9110-1455

Prescription Advantage

19,596,253

18,500,869

-575,000

9110-9002

Grants to Councils on Aging

8,206,604

9,433,748

-216,980

4510-0110

Community Health Center Services

962,863

1,067,287

-41,667

4510-0716

Academic Detailing Program

93,000

500,000

-500,000

4510-3008

ALS Registry

N/A

250,000

-125,000

4512-0200

Bureau of Substance Abuse Services

74,760,442

77,164,595

-135,417

4512-0225

Compulsive Behavior Treatment Program Retained Revenue

1,270,000

1,830,000

-560,000

4513-1111

Health Promotion and Disease Prevention

3,374,099

3,343,000

-50,000

4530-9000

Teenage Pregnancy Prevention Services

2,324,767

2,535,873

-157,462

4590-0250

School-Based Health Programs

11,584,588

11,797,967

-83,333

4590-0915

Public Health Hospitals

137,811,389

145,021,833

-950,000

5011-0100

Department of Mental Health Administration and Operations

25,453,167

27,373,198

-338,057

5042-5000

Child and Adolescent Mental Health Services

69,399,645

76,816,757

-1,890,000

5046-0000

Mental Health Services Including Adult Homeless and Emergency

330,141,005

346,027,150

-1,962,186

5047-0001

Emergency Services and Mental Health Care

34,596,130

35,242,254

-500,000

5095-0015

Inpatient Facilities and Community-Based Mental Health Service

143,557,523

167,313,321

-2,723,359

4200-0010

Department of Youth Services Administration and Operations

3,969,907

4,049,575

-150,000

4200-0200

Residential Services for Detained Population

17,467,326

20,983,713

-200,000

4200-0300

Residential Services for Committed Population

96,212,767

102,919,356

-569,000

4400-1100

Caseworkers Reserve

58,270,260

62,797,173

-1,943,161

4401-1000

Employment Services Program

6,393,841

7,899,506

-790,471

4403-2119

Teen Structured Settings Program

6,519,237

8,031,401

-638,194

4405-2000

State Supplement to Supplemental Security Income

227,624,077

233,128,438

-2,009,789

4408-1000

Emergency Aid to the Elderly Disabled and Children

90,030,120

90,929,877

-207,756

4800-0015

Clinical Support Services and Operations

65,476,185

67,626,557

-375,000

4800-0040

Family Support and Stabilization

43,689,153

44,573,551

-558,000

4800-0041

Group Care Services

189,001,365

198,335,991

-5,207,000

4800-1100

Social Workers for Case Management

160,998,660

166,188,468

-470,000

4800-1400

Support Services for People at Risk of Domestic Violence

20,658,558

21,455,430

-433,000

4120-2000

Vocational Rehabilitation for the Disabled

9,991,391

10,011,824

-135,999

4120-4000

Independent Living Assistance for the Multi Disabled

12,011,979

12,679,279

-75,000

4125-0100

Massachusetts Commission for the Deaf and Hard of Hearing

5,110,082

5,447,856

-52,500

5911-1003

DDS Service Coordination and Administration

60,818,166

63,087,273

-300,000

5920-2000

Community Residential Services for the Developmentally Disable

755,685,701

790,043,431

-5,486,805

5920-2010

State Operated Residential Services

164,488,263

184,922,682

-834,159

5920-3010

Autism Division

4,016,901

4,635,252

-22,167

5930-1000

State Facilities for the Developmentally Disabled

150,602,422

127,875,073

-1,738,996

1410-0400

Veterans' Benefits

38,973,715

44,208,484

-1,300,000

1595-6368

Massachusetts Transportation Trust Fund

180,126,756

166,591,136

-4,878,000

7004-2027

Community Investment Grant Program

N/A

1,500,000

-750,000

7007-0150

Regional Economic Development Grants

850,000

950,000

-100,000

7007-0300

Massachusetts Office of Business Development

1,619,026

1,717,393

-25,000

7007-0801

Microlending

200,000

200,000

-100,000

7007-0952

Commonwealth Zoological Corporation

3,500,000

3,600,000

-50,000

7007-1200

FOR THE MASSACHUSETTS TECHNOLOGY

N/A

2,000,000

-1,000,000

7004-0099

Department of Housing and Community Development Administration

8,628,449

7,309,734

-200,000

7004-0101

Emergency Assistance - Family Shelters and Services

135,262,352

80,042,354

-50,000

7004-0102

Homeless Individuals Assistance

37,941,049

40,450,335

-100,000

7004-3036

Housing Services and Counseling

1,495,982

1,495,996

-50,000

7004-9005

Subsidies to Public Housing Authorities

62,486,239

64,500,000

-50,000

7004-9317

Individual Development Account Pilot Program

N/A

50,000

-50,000

7006-0000

Office of Consumer Affairs and Business Regulation

750,384

846,160

-25,000

7006-0011

Loan Originator Administration and Consumer Counseling Program

2,468,469

2,650,000

-60,000

7006-0020

Division of Insurance

10,185,293

12,351,044

-150,000

7008-0900

Massachusetts Office of Travel and Tourism

2,038,748

7,217,109

-448,000

7003-0200

Department of Labor Standards

1,912,335

2,045,243

-40,000

7003-0900

Department of Labor Relations

1,753,813

2,005,872

-30,000

7003-1206

Mass Service Alliance

1,350,000

1,625,000

-287,500

7009-1700

Education Information Technology Costs

8,711,571

11,171,336

-25,000

7009-7000

Data Sharing

N/A

505,000

-505,000

3000-1000

Department of Early Education and Care Administration

11,498,371

12,322,954

-210,000

3000-2050

Children's Trust Fund Operations

994,561

1,065,473

-58,629

3000-5075

Universal Pre-Kindergarten

7,357,273

7,500,000

-67,617

3000-7000

Children's Trust Fund

10,415,435

10,463,346

-25,000

7010-0005

Department of Elementary and Secondary Education

12,767,008

13,694,988

-75,000

7010-0033

Literacy Programs

3,125,038

3,147,940

-25,000

7028-0031

School-Age Children in Institutional Schools and Houses of Cor

7,315,000

7,448,153

-122,639

7035-0005

Homeless Student Transportation

N/A

11,300,000

-5,250,000

7035-0006

Transportation of Pupils - Regional School Districts

43,521,000

45,521,000

-1,000,000

7061-0011

FOUNDATION RESERVE ONE TIME ASSISTANCE

N/A

3,500,000

-2,500,000

7061-0012

Circuit Breaker - Reimbursement for Special Education Resident

212,688,562

241,932,288

-11,500,000

7061-9010

Charter School Reimbursement

64,461,675

71,454,914

-1,000,000

7061-9200

Education Technology Program

860,691

887,543

-25,000

7061-9400

Student and School Assessment

24,338,435

24,385,395

-129,847

7061-9408

Targeted Intervention in Underperforming Schools

5,889,143

9,167,096

-50,000

7066-0000

Department of Higher Education

1,619,952

3,068,445

-575,000

7066-0005

Compact for Education

82,620

82,620

-41,310

7066-0009

New England Board of Higher Education

367,500

367,500

-183,000

7066-0020

Nursing and Allied Health Education Workforce Development

635,250

500,000

-100,000

7066-0024

Schools of Excellence

1,300,000

1,400,000

-100,000

7066-0025

Performance Management Set Aside

1,631,974

8,322,094

-1,050,000

7066-0038

Youth Venture

N/A

100,000

-100,000

7066-0050

Rapid Response Grants

N/A

2,250,000

-1,750,000

7066-0111

Higher Education Consultant

N/A

100,000

-50,000

7066-1221

Community College Workforce Grant Advisory Committee

N/A

200,000

-100,000

7070-0066

High Demand Scholarship Program

N/A

3,250,000

-1,198,293

8000-0600

Executive Office of Public Safety

2,015,088

2,212,797

-75,000

8000-1700

Public Safety Information Technology Costs

18,924,834

20,396,656

-362,500

8000-1800

Mental Health Public Safety Training

N/A

125,000

-125,000

8100-0515

New State Police Class

1,990,070

596,000

-25,000

8200-0200

Municipal Police Training Committee

2,439,032

2,520,378

-45,000

8311-1000

Department of Public Safety and Inspections

4,491,280

4,610,086

-50,000

8315-1023

Pipefitting Inspections

N/A

250,000

-250,000

8900-0001

Department of Correction Facility Operations

518,130,711

541,217,210

-2,200,000

8950-0001

Parole Board

16,368,184

17,807,436

-275,000

Massachusetts Budget and Policy Center

1 State Street, Suite 1250 | Boston, MA 02109 | (617) 426-1228

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